Further memorandum by Majestic International
Freight Forwarding Limited (RH 15A)
With regard to the new inquiry that you intend
to undertake into the Road Haulage Industry we would like to comment
as Freight Forwarders directly affected by any changes in this
particular industry. We contract Haulage companies to collect
goods to and from the UK and Europe. We have watched the Industry
decline at an alarming rate in the past five years and have seen
a growing increase of British Haulage companies either closing
down or going into liquidation. This has lead to a shortage of
equipment being offered to us in order to service our customers.
In tandem with fewer Haulage contractors the existing companies
require extremely higher rates to cover their increased costs
with regard to Vehicle Excise Duty and Diesel. It has now become
increasing difficult for us to compete with European Haulage Companies
whom enjoy substantially lower Duty and Diesel and whom can travel
on the UK roads at no extra costs to themselves.
The strong Pound and the weak Euro are also
a major contributing factor as 60 per cent of our customers are
European Companies. This has left us in the situation that despite
buying currency forward on the monies market, the rates we are
offered are far too low to pass on to our Hauliers as a viable
job.
The result of the above factors has culminated
in a downturn in our turnover to the tune of £1 million per
year since 1995 and from a respectable profit situation to a point
where we are finding it difficult to break even. This year in
particular has show without a doubt that the industry as a whole
is suffering, a few years ago we predicted the year 1999-2000
we would have a turnover of £5 million plus, we will be lucky
if we actually achieve £3.5 million.
We urge the Sub-committee to look closely at
the Road Haulage Industry and other Freight related Companies
with a view to introducing tolls on UK roads for Foreign Hauliers
in order that the extra revenue be used to reduce the Duty currently
imposed on the UK Hauliers. We feel like many other Freight Forwarders
that unless action is taken the UK Haulage Industry will suffer
substantial job losses and be replaced by Foreign Hauliers, which
will effect the UK economy. It has already happened in the UK
Export Market, as shown by our Export Department figures attached.
This has got to have a grave effect on the balance of trade figures
for this Country. Action taken will save tens of thousands of
jobs in the UK and many private companies from going into liquidation.
We have also attached our French Import Department figures as
an example of the effect on turnover just by this Company. We
are sure if you enquire with other Freight Forwarders, the story
will be the same.
Mrs Diane Hill
Company Secretary
February 2000
| 
